Oak Ridge Council takes next step on land bank

The city of Oak Ridge has taken its next step in creating a land bank.

Beverly Majors/Staff

The city of Oak Ridge has taken its next step in creating a land bank.

The step: Setting up a land bank corporation, which will then have the authority to create a land bank for real property.

City Council recently voted 6-1 on first reading of the ordinance to establish the Oak Ridge Land Bank Corp. Council member Trina Baughn was the lone “no” vote. Ordinances have to be approved twice before being adopted.

Land bank means property, however obtained, would be held by the Oak Ridge Land Bank Corp., until such time as the corporation finds a buyer to acquire the property. For example, a homeowner could donate a property after a house fire or after city officials deemed it unfit for human occupation.

The land bank discussion has been on-going since the Tennessee General Assembly chose the city of Oak Ridge as the pilot city for the state’s first land bank last year.

The concept of a land bank is part of the city’s 2011 “Not in Our City” initiative to address blighted housing.

City Manager Mark Watson said the land bank project would give the city more options to deal with housing issues and the corporation would “set the wheels in motion.”

“It’s a very creative way to deal with some issues,” said Mayor Tom Beehan in support of the proposed ordinance.

Several Council members had “concerns” about the creation of the Oak Ridge Land Bank Corp.

Watson said the land bank would not be a tool for imminent domain, stating Tennessee law directs that process. He said the land bank corporation would be more like the Oak Ridge Housing Authority.

City Attorney Ken Krushenski explained the Oak Ridge Land Bank Corp. would be governed by a board of directors and no action could be taken until a board is in place and the corporation is up and running.

Baughn praised the city manager on his aggressiveness on the “Not in City” campaign, but said the land bank “program gives me heartburn.

“This city has a history of not returning property to taxable use” she said, citing the city’s donation of a Hillside Road property to Habitat for Humanity

“I fail to see what this can accomplish,” Baughn said, adding that the project is the “government strong-arming property owners.”

Baughn also said the city has too many boards and is already in the “golf course business” and has the tools in place to deal with housing issues. She said a land bank would put the city in competition with businesses.

“If we want to set up a land bank, then this is the next step,” Beehan said.

Council member Charlie Hensley said the concerns would be addressed when rules and procedures are in place. The Oak Ridge Land Bank Corp. is part of the state act “that we can’t change.”

Baughn was also concerned that the land bank issue had to be put before residents in the form of a public hearing.

Resident Pat Fain agreed, stating the public “hasn’t had a say, yet.” She said the land bank legislation was “incredibly, badly written” and the land bank would be a limited tool to deal with housing.

"Are we talking about housing for the poor, cleaning up the city or making money?” Fain asked. “We’re talking around it. We need to stop and stop back and listen. We have to hear from all the people.”

Hensley, however, said the issue has not been devoid of public input.

“We’ve had two housing summits and the Planning Commission has looked at blight,” he said. “It’s all open.”

Former Council member Ellen Smith urged Council to pass the ordinance “as the basic framework.” She said the ordinance focuses on setting up the framework and the public should be involved in “focused concrete discussions. The public is not interested in the nuts and bolts.”

Resident Joe Lee took his comments to another level, addressing Baughn’s “government strong-arming” remark, stating, “the big bad government bogeyman is not going to take your home.”

Lee, who is a member of the city’s Board of Building and Housing Code Appeals, called the land bank program a “good idea. If we don’t get into the game, we can’t win the game. We can talk about housing until hell freezes over.”